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Personal Guarantee Letter for Belgium

Personal Guarantee Letter Template for Belgium

A Personal Guarantee Letter under Belgian law is a formal undertaking where an individual (the guarantor) commits to be responsible for the financial obligations of another party (the principal debtor) if they fail to meet their obligations. Governed by the Belgian Civil Code (particularly Articles 2011-2043), this document must clearly specify the scope of the guarantee, maximum amount, and duration. The letter requires explicit consent and clear terms to be legally enforceable in Belgium, with specific attention to consumer protection laws when the guarantor is acting in a personal capacity. The document serves as a critical risk mitigation tool in various financial and commercial transactions.

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What is a Personal Guarantee Letter?

The Personal Guarantee Letter is a crucial document in Belgian commercial and financial transactions, commonly used when additional security is required for loans, leases, or other financial obligations. Under Belgian law, particularly the Civil Code and Financial Law, this document must meet specific formal requirements to be enforceable. It's typically requested by creditors or financial institutions to secure obligations of companies or individuals who may not have sufficient credit history or assets. The guarantee must be explicit and specific about the scope of obligations covered, maximum amount, and duration. This document is particularly relevant in business financing, real estate transactions, and corporate arrangements, where personal guarantees from directors or shareholders are often required to secure company obligations. The Personal Guarantee Letter must be carefully drafted to ensure compliance with Belgian consumer protection laws, especially when the guarantor is acting in a personal capacity.

What sections should be included in a Personal Guarantee Letter?

1. Date and Address Block: Full details of the creditor (beneficiary of the guarantee) and guarantor

2. Subject Line: Clear identification that this is a Personal Guarantee Letter

3. Reference to Main Obligation: Details of the principal debt or obligation being guaranteed, including the debtor's information

4. Guarantee Declaration: Express statement of the guarantee commitment and its scope

5. Maximum Amount: Clear specification of the maximum amount being guaranteed

6. Duration of Guarantee: Period for which the guarantee is valid

7. Payment Terms: Conditions under which the guarantee can be called upon

8. Guarantor's Confirmation: Confirmation of understanding and voluntary nature of the commitment

9. Signature Block: Space for formal execution including date and signature

What sections are optional to include in a Personal Guarantee Letter?

1. Multiple Guarantors Clause: Required when there is more than one guarantor, specifying joint and several liability

2. Demand Mechanics: Detailed procedure for making a demand under the guarantee, if specific procedures are required

3. Release Conditions: Specific conditions under which the guarantor may be released from obligations

4. Governing Law Statement: While Belgian law applies, this may need explicit statement for cross-border situations

5. Language Declaration: Required for cross-border situations or when multiple language versions exist

6. Communication Details: Specific contact information and procedures for notices if complex arrangements are involved

What schedules should be included in a Personal Guarantee Letter?

1. Schedule 1 - Principal Debt Details: Detailed description of the underlying debt or obligation being guaranteed

2. Schedule 2 - Payment Schedule: If applicable, schedule of payments or obligations under the main agreement

3. Schedule 3 - Guarantor's Assets Declaration: If required, declaration of guarantor's main assets and financial position

4. Appendix A - Copy of Main Agreement: Copy or extract of the main agreement giving rise to the guaranteed obligations

5. Appendix B - Proof of Authority: If applicable, evidence of guarantor's authority to provide the guarantee (e.g., corporate resolutions)

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Belgium

Publisher

Ƶ

Document Type

Service Agreement

Cost

Free to use
Relevant legal definitions




















Clauses

























Relevant Industries

Banking and Financial Services

Real Estate

Commercial Lending

Retail

Manufacturing

Construction

Professional Services

Technology

Hospitality

Import/Export

Small and Medium Enterprises

Corporate Finance

Relevant Teams

Legal

Finance

Risk Management

Credit Control

Treasury

Compliance

Commercial

Business Development

Corporate Secretariat

Operations

Relevant Roles

Chief Financial Officer

Finance Director

Credit Manager

Risk Manager

Legal Counsel

Corporate Lawyer

Banking Relationship Manager

Commercial Director

Treasury Manager

Compliance Officer

Contract Manager

Business Development Manager

Company Director

Financial Controller

Credit Analyst

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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